BETHESDA, Md., Nov. 18, 2021 /PRNewswire/ -- Walker &
Dunlop, Inc. announced today that it structured a joint
venture partnership between Avanta Residential, a build-for-rent
(BFR) developer, and Invesco Real Estate, a global real estate
investment manager. As part of the transaction, Invesco Real Estate
acquired 75% of Avanta Residential, which is developing more than
20 neighborhoods and approximately 5,000 homes. Formed in 2020,
Avanta plans to create over 40 neighborhoods over the course of the
next several years.
Walker & Dunlop's dedicated BFR team served as
exclusive advisor to Avanta Residential and helped the firm
identify a joint venture partner to provide both funds and support
as they execute their business plan. The team partnered with
Dallas-based Invesco Real Estate
for the joint venture. In addition to facilitating the transaction,
the Walker & Dunlop team played a key role in developing the
terms of the agreement as well as support throughout the
negotiation process.
"Walker & Dunlop's team brought acuity and skill to this
equity deal. They met and exceeded the requirements of this complex
transaction," commented Jim Dobbie,
President of Avanta Residential. "Their extensive knowledge of the
BFR asset class and their advisory role were critical in helping us
find the ideal equity partner."
Cliff Carnes, Senior Vice
President and Chief Production Officer for Walker & Dunlop,
added, "Our team was thrilled to advise Avanta in this exciting
programmatic raise. This transaction is a testament to the strength
of Avanta's vision and strong execution capabilities." He
continued, "Combining the focus of our structured finance group
with the strength of our dedicated BFR team allowed Walker &
Dunlop to identify an equity partner whose experience and capital
structure aligned well with that of our client."
BFRs are purpose-built housing to be operated as single-family
rental investments within a contiguous community. This rapidly
growing asset class is emerging as one of the strongest sectors in
commercial real estate, and it is estimated that 5-10% of new build
homes are for BFR communities. The product has been steadily
increasing in popularity due to current demographic trends related
to Gen-Y and baby boomers. As more young families, families with
children, and retirees look to rent single-family homes with yards
and upscale amenities on a long-term basis – and migration patterns
related to COVID-19 have accelerated demand. As the demand for BFR
properties grows, an increasing number of larger investors are
expanding their investment strategy to include the product.
Walker & Dunlop's BFR & SFR Practice Group is
comprised of 12 experts strategically positioned across the
business to finance and sell these specialty communities. Our
national team provides expert guidance on property sales, debt
origination, and the structuring of equity to generate optimal
returns and strategic relationships for our clients. The team is
active with over fifty groups in the space, which range from
institutional clients, homebuilders, multifamily developers, and
individual investors. With an active pipeline of over $1.9 billion of transaction volume, the team has
extensive experience executing on lending, capital brokerage, or
investment sales opportunities. For more information on our
Build-for-Rent practice group or to connect with an advisor, visit
our website.
About Walker & Dunlop
Walker &
Dunlop (NYSE: WD) is the largest provider of capital to the
multifamily industry in the United
States and the fourth largest lender on all commercial real
estate including industrial, office, retail, and hospitality.
Walker & Dunlop enables real estate owners and operators to
bring their visions of communities — where Americans live, work,
shop and play — to life. The power of our people, premier brand,
and industry-leading technology make us more insightful and
valuable to our clients, providing an unmatched experience every
step of the way. With over 1,000 employees across every major
U.S. market, Walker & Dunlop has consistently been named
one of Fortune's Great Places to
Work® and is committed to making the
commercial real estate industry more inclusive and
diverse while creating meaningful social, environmental,
and economic change in our communities.
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SOURCE Walker & Dunlop, Inc.